- 20 Marks
QT – May 2018 – L1 – Q3 – Elements of Calculus
Calculate total revenue, items for maximum revenue, and total profit from given marginal revenue and cost functions.
Question
a) The marginal revenue function of a manufacturing company is given by:
The marginal cost function is given by:
Let x be the number of items either produced or sold.
Required:
i) Calculate the revenue generated when 50 items are sold. (2 marks)
ii) Calculate the number of items that will yield maximum revenue. (4 marks)
iii) Calculate the total revenue if 100 items are produced. (4 marks)
iv) Calculate the total profit for the 100 items. (4 marks)
v) If a tax of 20% is imposed on each item produced, find the cost of 100 items. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Integration, Marginal Cost, Marginal Revenue, Total Profit, Total Revenue
- Level: Level 1
- Topic: Elements of Calculus
- Series: MAY 2018
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